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Q2 | 2026
GLOBAL REACH / BOUTIQUE
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Q2 | 2026
When I purchased my first home in 1986, I financed it with an adjustablerate mortgage that carried an initial interest rate of 10.6%. At the time, I was paying $950 per month in rent for a two-bedroom apartment in Hancock Park. My new monthly housing payment including principal, interest, taxes, and insurance was approximately $975.
Even then, I felt I had made a terrific investment.
Would I be excited about a 10.6% mortgage rate today? Probably not. But that experience taught me an important lesson: interest rates are only one part of the homeownership equation.
Do I love the house—or condo, or investment property? Am I drawn to the neighborhood, the architecture, the schools, the nearby restaurants, or the convenience of my commute? Do I have friends and family nearby? Most importantly, can I comfortably afford the costs associated with ownership?
These considerations often outweigh the interest rate on a loan.
Today's real estate decisions are influenced by many factors. Wars, energy prices, inflation, the cost of everyday goods, housing inventory, affordability, insurance premiums, and differing buyer and seller expectations all play a role in shaping market behavior.
Yet there is always an optimistic perspective.
The greater Los Angeles real estate market continues to attract buyers from every corner of the globe, particularly within our luxury communities. Inventory has increased modestly, and homes are generally taking a bit longer to sell. As a result, buyers may find themselves with greater negotiating opportunities than they have enjoyed in recent years.
While the overall market has flattened somewhat compared to 2025, the luxury segment remains resilient, supported by well-capitalized buyers who are less affected by fluctuations in interest rates.
The following pages illustrate how our local markets performed during the last quarter. To me, every data point represents an opportunity and an invitation to participate in today's real estate market.
Peter Schwartz
General Manager KW Beverly Hills
City of Beverly Hills (90210)
City of Beverly Hills (90211 / 90212)
Beverly Hills Post Office - City of Los Angeles (90210 / BHPO)
Sunset Strip
Bel Air / Holmy Hills Westwood / Century City
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